Which? launches GBP3 billion legal claim against Apple
Press Hub UCapital
Share:
Consumer group Which? has filed a £3 billion claim against Apple Inc., alleging the tech giant has violated competition law by "forcing its iCloud services on customers."
Which? launches GBP3 billion legal claim against Apple
Which? claims Apple encourages users to sign up for iCloud to store photos, videos, and other data, thereby promoting its own products while making it difficult to use alternative services, ultimately stifling competition.
The group argues that Apple prevents customers from storing or backing up all their phone data with third-party providers, and that iOS users must pay for the service once they exceed the 5GB free storage limit.
The claim, filed with the Competition Appeal Tribunal, also accuses Apple of overcharging customers for iCloud subscriptions, partly due to its market dominance, which hinders the development of competing services.
Which? is seeking damages for all affected Apple customers who have used iCloud since October 1, 2015—an estimated 40 million people. Individual customers could be owed an average of £70, depending on their subscription length.
Requested to settle the claim outside of court
The consumer group has called on Apple to settle the claim outside of court by refunding consumers and opening up its operating system to allow more cloud service options.
Apple responded in a statement: "Apple believes in providing our customers with choices. Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. We work hard to make data transfer as easy as possible, whether to iCloud or another service. We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim."
CEO's comment
Which? CEO Anabel Hoult said, "We believe Apple customers are owed nearly £3 billion due to the company forcing its iCloud services on them and limiting competition from rival services. By bringing this claim, Which? is demonstrating to corporations like Apple that they cannot exploit UK consumers without consequences. This legal action aims to secure the compensation consumers deserve, deter similar practices, and foster a more competitive market."